The clarion. [volume] (Jackson, Miss.) 1883-1888, 1887-08-17


From communication in the Com |
mseaeinl Herald of the 18th, entitled |
Estate Debt Fallacies," written over
the signature &C. E. b." we make the
following extracts:
1. The CLARION first gives you the
total debt for each year, as shown by the
Treasurer's reports, but when he at
tempts to give you the payable debt, he
gives amounts which the Treasurer from
time to time pointed out to the Cover
nor and the Legislatures as amounts
which it would be necessary for them to
raise to meet payable debts when they
should become due, besides providing
for the support of the State Government
and her institutions in the mean time.
2. You will find The CLARION show
ing decrease of the whole debt from
January, 1876, to january, 1877, of
$144, 126.42, while it makes the decrease
in its so-called payable debt $304. 3i4.53.
3. Again, it makes the total debt de-
crease sos, 269.90 from January, 1879 to
January, 1880, and yet it makes the
payable debt increase S25, ST9.S3.
4. 1t is only necessary to add in re-
gard to THE CLARIoN's debt table, that
it has given the actual payable debt on
| ly one time, and that was as it vas JAN
uarY 1, 1886, S776, 1868.
.. The payable debt is not asceI tanned
Gas The CLARION states) by deducting
the cash in the treasury from the whole
debt.
6. The absurdity of THE CLARION
and of Mr.. Burkitt grows out of an at
tempt to reduce the debt with moneys
that were not specially pledged to its
payment, and moneys that were subject
to appropriation for the current ex-
penses of the State to the same extent
as were moneys collected after it was ap
propriated.
z. The CLARION is worried about
| $1S5, 1897, reported as debt until Jan
uary, 1888. Then it was that
the State Treasurer proceeded to apply
these S1S5, 1897 of warrants, that were
in his hands as cash until cancelled, to q
reduction of the States debt.
s. THE CLARION states that the State
debt was increased in 1876 by adding to
it 1927, 10000, Agricultural bonds. 1t
is in error there, for the Treasurer's re
port for 1876, shows that other bonds of
the State were cancelled, when these
bonds issued. \ \ x Hence the issue
of these bonds did not increase the
debt.
9. The CLARION adds these bonds
Agricultural to the total debt reported
January l, 1886, when they are a par
of that total, and it adds also the $lS5,
1897 so as to show total greater thar
that of 1876 and it omits to add to tn,
total debt reported January l, 1876, thu
Seminary Fund of $544, 061.23 which i
embraced in the debt reported January
/, 1886.
In replying to the foregoing extracts
which, on their face, show that they
were occasioned by our discussion of tn,
State debt, we pass over some criticisms
of our motives, which are irrelevant anC
not worthy of "G E. B."
The underlying trouble with sc. E
B." is the "fallacy" that leash balance
and current funds" have no proper place
in a debt statement-that debt is {
debt, and that it is no less a debt be
cause there is money in the treasury t.
pay it. He insists that though the
State may owe to-day million dollars
with five hundred thousand dollars il
the treasury, in comparing its presen
financial condition with its fnancia
condition at some other time when it al
so owes a million dollars and has nj
money in the treasury, the cash balance
of to-day shall not be considered. HI
makes the mistake of assuming that the
public are interested alone in knowing
the amount owed, without referf1ce to
the funds on hand with Wlfth to pay.
This is the graIuest of all mistakes. 1t
is the States financial condition, and
whether it has grown better or worse,
about which reliable information is
wanted, and this information cannot be
given in any statement which does not
give the cash balances.
We shall now reply to the extracts Sc
ridtim.
l. The Treasurer is responsible for the
plan pursued by The CLARION in giving
the "total debt" and payable debt" as
extracts from his reports will show.
In January, 1876, in his report to the
Legislature, after stating the total debt,
he says:
The above represents the total indebt-
| edness of the State January l, 1876, but
in order to arrive at the true condition
of the finances of the State, it will be
necessary to deduct therefrom the
amount of current and other funds as
follows.
In January, 1881, the payable debt is
thus stated after deducting current
funds, etc:
Leaving this balance of 5000, 707 80
as due by the State over and above hel
means to pay.
In January, 1888, the balance after
deducting current funds, etc, is thus
stated:
| And it is found that the payable deb
of the State beyond her ability to pay
at this date is $175, 2l4.06.
In January, 1886, the balance aftel
deducting current funds, ETC., is thus
stated:
Amount payable debt $773, 1868.
2. & 3. The "absurdities" in these
paragraphs result from the Treasurer
mode of stating the debt. The figures
are his. The discrepancies between the
decrease of total and payable debts are
partly explained when the fact is known
that the Treasurer does not deduct the
current treasury balance (cash) from
the total debt, but does deduct it from
the payable debt. For instance: The
increase in currency between January
/, 1876, and January l, 1877, was $111,
S9362. That amount was credited Oh
the payable debt and not on the tota
debt. Add it to the former or deduct
it from the latter and the discrepancy
will not be so great. Whatever it is, il
has been accounted for to a cent in
to-day's CLARION.
/ Te r-rr Cr aDroNr hos o,1x, ~, x-or